BRITISH TRADE SUMMARY

Hawera Star, Volume XLVIII, 8 January 1925, Page 6

BRITISH TRADE SUMMARY

A BRIGHT NEW YEAR. PERCEPTIBLE RECOVERIES. A DROP IN BUTTER. LONDON, Jan. 4. The y 7 ear has opened brightly on the Stock ‘Exchange, the confident tone which marked the close of 1924 being maintained in nearly every department with a satisfactory volume of business. The gilt-edged group quickly recovered from the shock it suffered on Wednesday from the surprise announcement of a new conversion loan issue, and the prospectus met with a favourable reception. Apparently the money is required to pay off maturing 5J per cent Exchequer bonds. No amount is staled in the prospectus, but the Stock Exchange estimates the amount wanted at beween £60,000,000 and £IOO,000,000, and no doubt- is expressed a? to its successful subscription.

Tiie issue of this loan probably explains what had previously seemed rather mysterious, namely, the flotation of the Victorian loan of £G,000,000 at the fag end of the year, a time not usually 7 regarded as propitious for such issues. Victoria apparently wanted the money quickly, and had its loan been delayed until the New Year it would have come into competition with the British Government’s more important issue, o '. STOCK EXCHANGE FIGURES. The return prepared by the Bankers’ Magazine, giving a valuation of 365 representative Stock Exchange securities makes cheerful reading, for it shows that during 1924 their value increased from £6,256,000,000 tft £0,518,000,000, an increase of £262,000,000, or 4.1 per cent. Of this increase only £65,000,000, or 4.5 per cent., occurred in the list of fixed interest stocks; while variable dividend securities rose by £197,000,000, or 9.4 per cent. The rise in British funds was a little under 2 per cent., and Colonial Government stocks, notwithstanding the issue of many 7 large loans, show the satisfactory increase of nearly' 34 per cent. The outstanding.feature was the rise of 15 per cent, in leading Home industrial shares, and the most spectacular advance was tliqt for tea shares, which have risen 95 per cent. Rubber shares are up by' 24 per cent. EUROPEAN CURRENCIES. Despite the increase in the supplies available for ordinary use, the average price of silver in 1924 was 2d per oz higher than in 1923. An expert in the bullion market explains that the chief reason for the improvement lies in the determined effort of European Governments to assist in the general restoration bv re-establishing their subsidiary coinage on a metallic basis, ami to replace the note issue to a large extent by 7 silver. Russia, Germany, Poland and Austria have been the principal purchasers of silver for this purpose, and, in addition to orders executed in- New York, 60,000 ounces have been bought in London, although part of that will not be delivered until early in 1925. According to the annual report of a leading metal broker, the end of 1924 was marked by the soundest situation in non-ferrous metals experienced since the beginning of the last decade. The Dawes plan has brought about a feeling of greater confidence in Europe, and the prosperity; which is ruling in the United States is stimulating trade, especially in industries using nonferrous metals. THE BUTTER MARKET.

The American public after many years are once more showing willingness to support the finance of the country’s railways. The result is a huge programme of construction and improvement on the part of the great transportation companies. Moreover, American capital is helping Germany, whose industries are now in excellent shape, and, as Germany is Europe’s foremost consumer of metals, this factor is making itself felt in the world’s metal markets.

The downward movement in the butter market set in directly business resumed after the holiday's, and seems likcl.v to continue, as quantities due to arrive this month amount to 410,000 boxes of Australian and 460,000 boxes of New Zealand. In fq.ee of these heavy 7 prospective supplies, retailers are operating very cautiously, and are not buying a box more than actual requirements.

f l lie quality of Australian butter now arriving shows a, considerable improvement. The new grading regulations are apparently working satisfactorily. One large importing firm says: “Best Australian butters are increasing in favour weekly. We think the margin of price between Australian and New Zealand will gradually shorten.”